RBZ speaks on how long of bond notes will be in circulation

Posted by Tayana

The Reserve Bank of Zimbabwe (RBZ) has said bond notes, which are due for introduction this month, will remain in circulation for as long as the country does not have its own official currency. In terms of the facility, the central bank will award exporters a bonus of between two and five percent of the value of total export receipts in bond notes, which will be credited to the exporters’ local bank accounts.

In a statement tackling various issues surrounding the soon to be introduced legal tender, the RBZ said the bond notes were not a currency but a financial instrument providing a contractual right to receive or deliver cash. The cenral bank said,

Bond notes are not a surrogate Zimbabwe dollar for they are not currency but a financial instrument, issued at par with the US Dollar. Bond notes will operate in the same manner that the Bond coins have been operating. Bond notes will exchange at the same value as the US Dollar. When the RBZ introduced the Bond coins for the purpose of change in 2014, many have been sceptical that they will not maintain their value, which they have done.

More: Chronicle



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